Kowabunga! to Divest Several Non-Core Business Units
01 July 2008 - 6:05AM
Business Wire
Kowabunga!� (AMEX:THK), the leading provider of interactive
performance-based advertising networks and technology platforms,
announced today that it has engaged McFarland Dewey & Co., LLC
as its financial advisor to assist in the divestiture of certain
non-core business units. The Company intends to focus its efforts
on its Network and other interactive businesses which have
potential for enhanced growth. The business units that are no
longer considered critical to its long term strategy and identified
for divestiture are: (1) Cherish Inc., which provides online
personals services; (2) MarketSmart Advertising Inc., which
provides traditional offline advertising services; and (3) iLead
Media, LLC, which provides online lead generation and digital
marketing services. Proceeds from the sales will be used to reduce
indebtedness and to fund the expected continued growth of the
Network segment. The Company also announced that it expects to
complete the sale of The Catamount Group, its full-service direct
response agency located in Bethel, Conn. within the next ten days.
Catamount formerly operated within the Company�s Direct segment.
�The recent growth in our Network segment over the past few
quarters has provided us with the flexibility to move more
aggressively to divest certain non-core assets,� said Stan Antonuk,
CEO of Kowabunga!. �McFarland Dewey�s recent experience in selling
similar businesses was instrumental in our decision to choose them
as our financial advisors. We are confident they will provide
valuable assistance in accelerating the process of finding the
right buyer and optimizing the value of these businesses.� �We
anticipate that these planned divestitures will allow us to better
focus on the growth opportunities in our Network and other
interactive businesses,� Antonuk went on to say. �Our ValidClick�
legacy search network continues to exceed our earlier growth
expectations and our newer ValidClick AdExchange� is drawing
increasing interest as the only truly open pay-per-click
marketplace. Through effective leveraging of our FeedPatrol� click
fraud technology in combination with Fair Isaac�s� Click Conversion
Score�, we believe that the ValidClick AdExchange provides the only
objective, data-driven method in the industry for fairly
compensating publishers by evaluating the relative conversion value
of a click. Correspondingly, advertisers are able to effectively
extend their reach while achieving a more consistent ROI on their
marketing expenditures. In June, we upgraded the platform�s
performance and scalability to allow enhanced efficiency. On the
CPA side, the upgrade to our merchant affiliate platform, MyAP�, as
well as the planned simultaneous launch of our own affiliate
network platform, KB Network, continues and will be made available
to both new and existing merchants and affiliates by this fall. We
believe MyAP�s new features and functionality will help us be very
competitive and will lead us to market share gains in the CPA
affiliate marketing space over the long term.� About Kowabunga!
Inc. Think Partnership Inc. is now doing business under the name
"Kowabunga! Inc." and will seek formal shareholder approval to
change its legal name to Kowabunga! Inc. later in 2008. Kowabunga
Marketing Inc. will continue as a subsidiary, operating its
affiliate network and related products. Kowabunga! Inc. is the
leading provider of interactive performance-based advertising
networks and technology platforms. Kowabunga! provides a
comprehensive and integrated set of scalable and cost-effective
marketing solutions for both advertisers and publishers. These
solutions increase customer retention and revenues through a
diverse set of related marketing channels, including affiliate
marketing, click-fraud-protected pay-per-click advertising, lead
generation, interactive direct marketing, integrated offline
advertising, campaign management, public relations, and branding.
Kowabunga! also operates several direct-to-consumer services
including online dating, online education, and home business
opportunities. High-profile brands include ValidClick AdExchange�,
MyAP�, PrimaryAds�, BabyToBee�, Second Bite� and MSA. For more
information, visit www.kowabunga.com. About McFarland Dewey &
Co., LLC McFarland Dewey & Co., LLC is a partners-owned
investment bank providing, since 1989, financial advice to middle
market companies and their shareholders. McFD bankers bring decades
of experience advising on complex transactions which require
specific industry knowledge and seasoned judgment of the financial
world. The firm has extensive expertise in advising on mergers and
acquisitions, corporate restructurings and privately raising debt
and equity. Their offices are located in New York and Cleveland.
For more information, visit www.mcfarlanddewey.com. Forward-Looking
Statements Statements made in this press release that express the
company�s or management�s intentions, plans, beliefs, expectations
or predictions of future events, are forward-looking statements.
Those statements are based on many assumptions and are subject to
many known and unknown risks, uncertainties and other factors that
could cause the company�s actual activities, results or performance
to differ materially from those anticipated or projected in such
forward-looking statements. For a discussion of these risks, see
the company�s report, as filed with the Securities and Exchange
Commission on Form 10-K, filed March 31, 2008, under the section
headed �Risk Factors.� The company cannot guarantee future
financial results, levels of activity, performance or achievements,
and investors should not place undue reliance on the company�s
forward-looking statements.
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